ECN Technology
Stock split
Securities splits and consolidations (including reverse splits) are significant corporate events that result in changes to both the value of shares and the number of shares in circulation. A split allows a company to make its stock more attractive to ...
CFD - Contract For Difference
Contract For Difference is an agreement (guarantee liability) between two parties on the payment of the difference between asset's current value and its value at the end of the agreement period. In fact, the parties conclude an asset buy/sell ...
CFD - Pip value
The pip value for CFDs is calculated using the following formula: where: K — Profit Currency (second currency in the symbol) to Deposit Currency conversion rate. Volume — volume of position in lots. Lot Size — number of ounces, barrels or commodity ...
CFD - Contracts specifications
See Contract specifications.
CFD - Commission
CFD trading has commission to open and to close a trade and the commission is deducted from Account Balance at the moment of opening the position. The commission for trades on commodities (XBRUSD, XTIUSD, XNGUSD) is calculated using the following ...
CFD - Calculation of dividends when trading Stocks and ETFs CFDs
Deduction and accrual of dividends when trading Stocks CFDs and ETF CFDs A Contract for Difference (CFD) is a derivative instrument, underlying assets (stocks, indices) of which are traded on stock exchanges. When trading CFDs on a company's shares, ...
Slippage control (cancelled by dealer)
Order execution in ECN accounts is designed in a way that provides super-fast execution as well as excludes any dealer intervention in the process. However, these significant advantages might possibly cause adverse high slippage in rapid-moving ...
Islamic accounts and Swaps
FXOpen offers SWAP-free Islamic accounts which are compliant with Sharia laws for Muslim traders. If you are not sure if your account is Islamic or not, please contact FXOpen Customer Support, give your account number and ask to make your account ...
Scalping, Hedging, Phone Dealing
ECN accounts allow scalping without limitations. Your trades may stay open for several seconds only and you can place Stop Loss, Take Profit and Stop and Limit Orders within the spread (1 or 2 pips away from the current market price). Hedging in ECN ...
Expert Advisors
An Expert Advisor, also known as an EA, is a mechanical trading system used for Forex trading. Expert Advisors allow for automatic trading to take place, freeing the trader from continuously having to watch the market. Making a profit while trading ...
Reserving Margin for Pending orders
Before we move on to in-depth explanation of Margin calculation in ECN accounts, let us highlight the key peculiarities of this account type. This will help traders avoid mistakes in free Margin calculation when trading in ECN accounts, especially ...
Margin Call and Stop Out
In ECN accounts, the Margin Call is triggered when the Margin Level (Equity to Margin ratio) is less than 100% (i. e. the equity of your trading account is equal to the margin used to open the positions). A position is stopped out (closed by broker ...
Margin Trigger
The ECN Broker transmits the clients Limit Orders to the Marketplace which causes the illustrated in Fig. 2 to occur. Once a Limit Order is placed in the Marketplace the Client must put up the margin for the position. However, at the moment when ...
Leverage in ECN accounts
The leverage of 1:1000 is available on TickTrader accounts only and for FXOpen INT clients only. There are no leverages between 1:500 and 1:1000. Conditions are the same as for the 1:500 leverage (for accounts under $25,000). Leverage available for ...
Types of Orders: Stop Loss and Take Profit Orders
Stop Loss and Take Profit Orders can be included in a pending order or modified on an existing position. After a pending order has been triggered, any input Stop Loss and Take Profit levels will be attached to the open position automatically. Stop ...
Types of Orders: Limit Orders
This type of order allows you to control the price at which the position will be bought or sold. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher, meaning ...
Types of Orders: Stop Orders
A pending order becomes a market order when a specific price level is achieved and broken. A stop order is placed below the current market value of that currency for Short (Sell) positions and above for Long (Buy) positions. When the price reaches ...
Types of Orders: Market Orders
Market Order is an order that lets you fill your order the fastest way. You can almost always expect your order to be filled, however this might not be at the best price you want. During volatile times the gap between the price you see when you enter ...
Transaction Size in ECN accounts
The minimum transaction size in ECN accounts is 0.01 lot (1000 units of the base currency) with incremental lot of 0.01. If you do not see the exact volume you'd like to trade in drop-down list in the New Order window, type the volume in the Volume ...
Minimum Deposit and Maximum Balance
The minimum required deposit and maximum balance can be found in the TRADING > Trading Accounts > ECN section on the company's website.
How to Calculate ECN Commission
The commission rate depends on the account equity and the monthly trading volume. The commission rate can therefore decrease or increase from month to month depending on the traded volume in USD terms for previous period and also the account balance ...
Commissions
Commissions in ECN accounts ECN accounts have commissions to open/close a trade. The commission rate depends on the account equity and the monthly trading volume. The commission rate can therefore decrease or increase from month to month depending on ...
Prices and Spreads
ECN prices ECN accounts have 5th decimal pricing (0.12345). 1 pip with 0.1 lot (10,000 base currency) is equal to approx. $0.1 (10 US Cents). Spreads in ECN accounts ECN environments more appropriately use the word difference instead of spread. ...
Financial Instruments
All the necessary information can be found on the company's website in the TRADING > Markets section. If you still have questions, contact us via Live Chat: FXOpen Live Chat (FXOpen Markets Ltd), FXOpen AU Live Chat (FXOpen AUS), FXOpen UK Live ...
Partial Fills
Partial fill — a common practice on the MT4 platform when using No Dealing Desk execution. Partial fills occur when a market place does not have sufficient volume of the instrument to open or close a trade due to low liquidity. The round-turn ...
ECN Account Opening
Demo ECN account opening Please, do the following: Go to PLATFORMS > Trading Platforms > MT4 on the company's website. Download and install FXOpen MT4 ECN trading terminal. Download and install the One Click Trading & Level 2 plugin (on the same ...
What's SWAP?
What is SWAP? In simple terms, a swap is an interest rate that is paid or charged to you at the end of each trading day. Let's consider this in more detail using the example of buying a EUR/USD pair. For this transaction, the trader takes a loan from ...
What is margin trading and leverage?
Simply put, margin trading is a situation when a trade is made for money borrowed from a third party. Leverage shows the ratio of borrowed funds to own deposits. Let’s take a closer look. Imagine you need $2000 to make a trade, but you have only ...
What is Forex?
What is Forex? We'll try to explain it in simple words. You may have already participated in Forex trading if you traveled abroad and bought local currency. FOREX is simply an abbreviation for “foreign exchange”. But Forex trading itself is more than ...
ECN — General Overview
ECN stands for Electronic Communications Network. Due to the Forex market being largely unregulated, there is no central exchange for Forex and trading is performed on an OTC (Over The Counter) market. ECN trading gives you direct access to the Forex ...